My Lords, I should like to talk about Clause 3 standing part of the Bill, if that is agreeable to your Lordships.
The EU factsheet that the Government put out stated that the Bill is designed to strengthen the connection between the British people and the European Union. Actually, Clause 3 seems to be almost perversely designed to do the exact opposite of that perfectly reasonable ambition. The noble Lord, Lord Waddington, who, sadly, is not in his place, said that those of us who had supported the amendments to Clause 3 were in denial about the lack of popularity of the European Union. I am afraid that that is simply not true. I agree with much of the diagnosis about the EU’s lack of popularity, but I absolutely disagree with the treatment that the Government are putting forward by means of Clause 3.
The exceptions to the referendum lock are very limited. On most issues, that lock is unbreakable, as was pointed out earlier. It is enormously strict, and the purpose of the amendments has been to give Parliament greater flexibility in respect of whether or not a referendum is necessary. The Government are on record as saying that referendums should be kept for exceptional issues and important decisions that ought to be taken on a nationwide basis.
In an earlier debate in your Lordships’ House, the noble Lord, Lord Williamson of Horton, described this as a “watershed” Bill. The measures in Clause 3 are watershed measures that need to be tempered by greater flexibility—the sort of flexibility that the amendments provided for—that will maintain the authority of this Parliament, which would otherwise be hugely undermined. We are a parliamentary democracy; that is the basis of our government. This Bill drives a coach and horses through that concept.
The noble Lord, Lord Hannay of Chiswick, said that it cannot be denied that the frequent use of referendums will seriously damage the legitimacy of Parliament. I think that the situation is much worse than that. The measures in Clause 3 will engender enormous cynicism among the British people if they are asked to take part in referendum after referendum, as the noble Baroness, Lady Williams of Crosby, said. Worse, there will be not just cynicism, but ridicule—the worst of all possible weapons that can be used.
In time, Parliament will recognise that that is the case and will probably, therefore, avoid using referendums. The noble Lord, Lord Waddington, said earlier that he would welcome avoiding such referendums, because it would mean that a block on EU decision-making could be made. Of course we may be able to block EU decisions in order to avoid a referendum, but other countries may have decided to go ahead under the enhanced co-operation provided for in the Lisbon treaty. The Minister has not answered that point. There is no such thing as an absolute block in many areas because of the provisions of the Lisbon treaty in allowing for that enhanced co-operation, and I should be grateful if the Minister said a little more about those provisions and the likelihood—indeed, some would say, the inevitability—of them being used. If that is the case, this country would be pushed to the margins of Europe again—as a result, distancing the British people even further from Europe and even further from the objectives that the Minister so passionately espoused when putting forward the Bill.
The amendments that we discussed today have been designed to provide that greater flexibility and to give Parliament the ability to look at what really merits a referendum and consider the serious issues on which the people of this country, on a nationwide basis, should be called upon to take decisions. Somehow the impression has been given—notably by the noble Lord, Lord Waddington—that if the United Kingdom blocks a measure, that is the end of it. Those of us who went through the Lisbon treaty know that that simply is not true. On this issue I look particularly at the Liberal Democrat Benches. They are good Europeans. I regret to say that in many ways they have been better Europeans than my own party. That is the truth of the matter, and that they can go along with these sorts of measures in Clause 3 frankly beggars belief.
My Lords, we have discussed the principles and details embraced in this clause at some length and I am grateful for the additional points that have been raised in the stand part debate.
I apologise straight away if the noble Lord, Lord Stoddart, thought that I cut him short or intervened as he expressed his very sincerely held views. I thought that he had commented earlier but I am very glad that he has now had an opportunity to speak. He raised issues that go wider than the Bill, although they are not totally unrelated to it. He raised the question of scrutiny in our two Houses, which is something that we want to strengthen. He is absolutely right that in the past the reasons for not observing or waiting for the scrutiny process were possibly a little too cavalier. These are matters that we have all argued for and there is a constant search for improvement. However, I think that the operation of our own European Union Committee and the European Scrutiny Committee in the other place are commendable. They cover an enormous amount of ground with very great thoroughness. Speaking from this government position, I can say that it certainly is right for the Government to pay maximum attention to that. It makes complete sense.
There is the broader question of the democratic nature of the European Union and the kind of issues that were addressed in the Laeken declaration. That declaration pleaded with the European institutions and national Governments to seek ways to bring European affairs closer to popular consent and to the people so that they had a greater understanding of where the European Union benefited its members—as a home club or home team it could achieve greater things in combination—and where it should not necessarily intrude on affairs that were properly the concern of nation states and those close to the ground of intimate local issues, which were best governed and decided at national or local level and possibly not at the loftier level of the European Union. That is a broader issue which we shall perhaps come to.
The European Union, like any great institution and certain institutions of the last century, needs reform. We are now facing totally different conditions from the ones that we faced even a couple of years ago, and so is Europe. Power has moved, wealth has moved and economic activity has moved. The things that some of us forecast 15 years ago, such as the rise of easternisation, as we called it—the rise of the eastern powers—have taken place. That is a question not just of shifting economic gravity but of shifting political gravity as well. In those conditions, Europe as an institution needs to move ahead and the nation states within it need to achieve greater popular support and democratic consensus than they have achieved so far. I shall come to that point again in a moment when I address the views of the noble Lord, Lord Mandelson, which were extremely interesting and stimulating.
I turn, first, to the noble Lord, Lord Kerr. I am sorry that he did not think that my answers were serious. They were intended to be deadly serious; obviously I did not have quite the right tone. However, I emphasised as strongly as I could that we need Clause 3 as well as Clause 2. Clause 3 is needed to address areas where there can be transfers of power and where the special short revision procedure is employed. The noble Lord asked why there was no significance test in the case of Clause 2. The answer is that in Clause 2 we are dealing with treaty changes where competences are shifted or not. In the case of the judges that he mentioned, there would not be a transfer of powers, so there would not be a transfer of competences. If more judges were appointed, the issue would not arise, so there would be no need for any of these procedures at all. Otherwise, all the issues in Clause 2 require treaty changes; and treaty changes, unless they are exempted or unless there is no transfer of power, qualify for and attract a referendum. In Clause 3 the pattern is completely different. There, we are dealing with transfers of powers which are not defined in the treaty, although they are defined to a considerable extent in the Bill. I have listed them again and again until I have become almost short of voice. This is a whole range of powers that can be transferred, and a degree of judgment—although not a vast degree—is required in relation to their significance. That is the difference.